Matrix Corporation,a Computer Manufacturer,agrees to Purchase from Chipmaster,Inc

question 11

Multiple Choice

Matrix Corporation,a computer manufacturer,agrees to purchase from Chipmaster,Inc.all the computer chips that Chipmaster can produce during the next 12 months,at cost plus a twelve-percent markup.Matrix later does not purchase any computer chips during the 12-month year.Can Chipmaster enforce the agreement made with it?

• A)Yes,this is an enforceable requirement contract.
• B)No,the price is not sufficiently defined.
• C)No,the agreement to purchase is illusory.
• D)Yes,this is an enforceable output contract.

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Definitions:

Thyroid Gland

An endocrine gland located in the neck, producing hormones that regulate growth, metabolism, and energy use in the body.

Adrenal Gland

A gland above the kidney that produces hormones such as adrenaline and cortisol, which help control heart rate, blood pressure, and other key functions.

Pancreas

An organ in the abdominal cavity with roles in both digestion and the production of insulin and other hormones.

Electroencephalograph (EEG)

A diagnostic tool that records the electrical activity of the brain using small, flat metal discs attached to the scalp.